Kotak has downgraded State Bank of India to ‘accumulate’ from ‘buy’ as the stock has risen too fast too quick belying the risk associated with its asset quality.

The stock has risen 15 per cent last week,outperforming the broader market. Slippages remain at elevated levels run rate of 4 per cent in the last two quarters and was clearly negative in our view,Kotak Securities said in a note.

Its 9 per cent loan book is under stress (gross NPA at 4.6 per cent and restructured book at 4.3 per cent),which could be the potential risk,it added.